A big element of the so-called “American Dream” is this idea of lifting yourself up, that anyone can succeed with hard work. That the United States is the land of opportunity, a class-free society. There may have been, for some people, just such opportunities. Many of us can look at friends or family and see people who moved upwards in social station, both economically and socially. As Ezra Klein points out, those opportunities are being foreclosed for more and more people:
The Center for American Progress just released a comprehensive study of economic mobility and income volatility. And, according to its data, Andy’s right about the American lack of fatalism, the belief in opportunity and mobility. When asked if people get rewarded for their effort, 61 percent of Americans agreed, versus 49 percent of Canadians, 33 percent of the British, and 23 percent of the French (weirdly, the Philippines win this one, with 63 percent agreeing). But of all these societies (save the Philippines), America is one of the least mobile, which is to say the least dependent on hard work rather than social station. In Denmark, the relationship between your parent’s income and yours is 15% percent or so. In Canada, it’s 19% percent. In France, it’s 41 percent. And in America, it’s 47 percent. The only country more hidebound and hierarchal is Andy’s native England (50 percent), also the country most closely approximating the American economic model.
The American model.
Just what has that model become? It’s certainly NOT one that rewards hard work, but rather one that rewards capital, and ONLY capital. Perhaps it never came close to what it once promised to be, especially for minority members of our society, but the crony capitalism that we all labor under now has locked this country into a harsh and unforgiving feudalism. In many ways, an institutionalized form of indentured servitude has been established for entire populations of people. The contracts now aren’t labor in return for room and board, or in return for training for a trade. Instead of signing away freedom for a short amount of time in return for passage, today one signs contracts for credit: credit for a home, credit for education, credit for for the proper clothes and accessories to be presentable for work. Credit for a vehicle to get you to the job, a job that serves mainly to feed those lines of credit that were necessary to get the job in the first place.
Bootstraps have been replaced by invisible chains, chains locked in place by signatures on a line marked by an X. Thanks to a political class that serves only owners, not workers, breaking free of those chains has become much harder, while obligations that are supposed to flow down to workers, like healthcare and pensions, are increasingly being abandoned by the corporations. Unlike the contracts that old indentured servants labored under, today’s workers have no end date in sight. There is no contract with an employer, because the contracts have been threaded into the warp and woof of everyday life.
Have a problem with your credit? Well, obviously the problem is with YOU. YOU didn’t restrain yourself, or weren’t disciplined enough, or didn’t network effectively. Here, buy some books that will teach you how to fix yourself. It’s not the system, it’s not that over-priced college degree or anything else that YOU chose to buy with credit, the problem is you. Workers are the problem. Always the problem, and interlocking institutions work in concert to reinforce this message. WE all work together to reinforce this message. It’s a strange and insidious thing that has grown up over time, and now those who benefit from it are buying and selling political access to ensure that it never changes.
What of those who don’t or can’t get on the treadmill, those who’re too poor, or too uneducated thanks to our eviscerated schools, or too dark for our still racist nation to welcome into even this fold? They are left to labor in less essential jobs, still out in the fields and held out as an internal threat, used to frighten middle class workers with stories of crime or threats of a bottom waiting to swallow them up.
In short, most of us are left to fend for ourselves.
The only way out is to help keep the system in place. If you want to climb the ladder, you need to be either preternaturally disciplined, magically lucky or (and this is how it is usually done) you must not look too closely at what you’re doing and step over any and all in your path.
As we have done increasingly over the course of our history, Americans (and our British cousins) have become evangelical about spreading our cold, harsh and selfish system throughout the world. William Pfaff writes in the International Herald Tribune (tip of the hat to Jerome a Paris for the link):
Advocates of the new model capitalism, and the globalization project that goes with it, like to present it as an expression of historical necessity, rooted in classical economics and embodying irrefutable laws. It is progress itself, they say. Those who do not conform to the rules of modern market capitalism, and do not offer the human sacrifices of lost employment and diminished living standards that the market demands, will fall by the wayside of history.
This is simply untrue, although most of those who say it undoubtedly believe it.
The new American and British market capitalist model, which dictated deregulation of industry and privatization of state enterprises in the 1970s, and globalization of international markets in the 1990s, exists as a result of free political decisions and ideological choices that were anything but inevitable. History may one day describe them as having been perverse and socially destructive.
Two of the most important influences on the new capitalism were academic in origin, and the third, improbably, was an instance of romanticized egoism.
As we saw recently in France, and in the spreading leftist movements in Latin America, more and more people are seeing that our economic system is a political choice. Unlike the propaganda offered by our business media and corporate flacks, it isn’t a natural system, inevitable as the tides and the phases of the moon. Pfaff continues:
This is what underlay the transformation of American corporate culture, and of the American business corporation from an institution with national identity, constrained to reconcile interests of owners, employees and community, into the modern global corporation, effectively controlled by its managers and mandated to the single objective of producing “value” for stockholders, while handsomely rewarded its executives.
This change transformed labor into an anonymous commodity and put both blue-collar and white-collar staff into competition with an effectively unlimited global labor supply, resulting in employment insecurity, reduced or static wages, diminished or eliminated benefits and pensions, and the destructive social pressures of falling living standards.
In the United States, the new model of corporate business has evolved toward a form of crony capitalism, in which business and government interests are often corruptly intermingled, the system resistant to reform because of the financial dependence of both major political parties on contributed money.
Frequently described by its supporters as a progressive step in the development of a new international economy, the political-economic system that has evolved in the United States has proved regressive in crucial respects, as well as inefficient and abusive of the public interest.
Many workers KNOW that the current setup isn’t working for them and their families. No matter how often it’s banged over our heads that the economy is growing and creating jobs, more and more of us see no signs of it in our daily lives. Instead, we feel our wages stagnating (as Klein links to here) and our opportunities contracting. Given our collective lack of historical awareness, many of us don’t even realize that this iteration of capitalism isn’t even more than a few decades old. It’s not set in stone, it’s not a byproduct of some natural law. We can choose to change it.
Or we can keep on as we are, living with a system that, as Klein finishes his piece:
Americans may believe that hard work ends up offering great rewards, but the data shows that that’s simply not the case. Remember that next time you hear some conservative flack — maybe one named Tony Snow? — trumpeting the economy’s underreported strength. Why should folks appreciate a musclebound economy if it’s using those biceps to pummel the working class?
Both political parties serve this system. Both thrive on our continued servitude to capital and credit. One can realize this without calling for the end of private property. We can choose to order our system in a more equitable manner. We can put the needs of people wishing for better lives ahead of those of artificial corporate legal “persons” that exist only to exist and to grow. Look to the streets this coming Monday to see fellow human beings fighting for a more equitable system. They’re fighting not only for themselves, but for all of us.
Horatio Alger is dead. Corporate servitude is the new business model. And letting GM pull the rug out from under all those retirees is just the latest shameful evidence.
Ignorant furr’ner here… what has GM done to pensioners… I think I must have missed out on the news somewhere along the line.
GM is going to make a single payment to a large class of emplyees in full satisfaction of what would likely have been a much larger obligation.
See links downthread.
While I’m actually sick of hearing about our problem with gas prices, sometimes I wonder if this hasn’t become the way that Americans are expressing their frustration with our economy. I always want to scream when I hear those in Washington (Dems, Repugs, and media) crow about how well the economy is doing – yeah for the investor class. They have forgotten that there are those of us out here who actually work for a living and we’re not doing so well. It isn’t just about the cost of gas. Its also about the increasing cost of health care, perscription drugs, tuition, housing, credit, etc. combined with stagnant wages. So the more they talk about how well the economy is doing – the more disconnect people feel with what they are saying. Trust is starting to break down big time.
well, a lot of the wailing over gas is that the increase is so quick, and immediately apparent, at least once-a-week for many as they fill their tanks up to go to work. (I haven’t owned a car since ’85, and haven’t lived in a household where I used one regularly since the late nineties. My piece-of-mind thanks me regularly).
I think people are wailing about it b/c it’s harder to ignore than all the other problems. So many of people’s other economic problem get chalked up to a lack of discipline or a bad boss or backstabbing co-workers. People don’t look too closely at the system, except when there is a sudden unexpected rise in the daily cost of living.
That these increases are more-than-a-little predictable, and are to a great extent the result of deliberate constrictions on supply that are seasonable recurrent, is another thing that people ignore. There is a spike like this around this time nearly every year.
yeah, it is the suddenness and seeming irrationality of the price hike. It costs a lot to fill a tank these days. People are driving slower, consolidating shopping trips, changing vacation plans. It’s concrete and it hurts.
People will adjust to it, but they don’t appreciate an unanticipated increase in the cost of living…especially one that effects their freedom of mobility.
as in the rural areas of most of the country both individuals and business have proportionately higher expenses due to miles traveled where there is absolutely no alternative (other than say horses or bicycles) to burning gas or diesel fuel.
The shrinking American middle class is the canary in the coalmine. When you add an average of $9,000 of consumer debt you wonder when the match is going to hit the (ever more expensive!) gasoline.
Bonddad has some good links and stats up about the chains that restrain so many of us.
GM’s Health Care Hostage-Taking
And Cost of Medicare D(isaster) Corporate Welfare
thanks for the links.
It just keeps getting worse.
And it is going to get worse before it gets better, I mean, if it gets better.
Much ironies in the fire.
Anson McDonald was a pseudonym for Robert A. Heinlein.
During the 1930’s Heinlein was very active in the Upton Sinclair’s End Poverty in California movement and worked as a writer and editor for Epic News. He also ran for a seat in the California State Assembly in 1938. (Interestingly in that campaign an early version of swift boating occurred when the Republican associated Heinlein with the NSDAP leader Henlein.)
One of the reasons he started writing science fiction short stories was to pay off debts stemming from the campaign.
I was wondering if anybody would recognize the name. I thought about putting a caption under it, but it seemed more fun to let it fly.
I didn’t know he was associated w/ Sinclair though, thanks for the info.